In a nutshell, apersonal loan top-up is an additional amount you can borrow on a pre-existing personal loan. You can do this only after paying off a specified number of EMIs.
So, if you have a stable loan repayment record, your lender can let you borrow some additional money either at a lower or the same interest rate.
Sounds like something you might need? Not sure how to apply for a top-up loan? Without further ado, let’s get right to it.
Meeting the eligibility requirements
The first step is to fulfil the top-up on personal loan eligibility criteria –
- You must have an existing loan with the lender.
- Lenders can only give you a top-up after you’ve repaid a certain portion of the outstanding loan.
- A stable income is a must as it instills confidence in the lender about your repayment capability.
- A healthy CIBIL score is critical as it proves your creditworthiness.
- A proper track record of timely EMI payments is a must.
Additional Read: Difference between Top-Up Loan and Personal Loan
Applying for top-ups
There are two ways of receiving a top-up on your loan. The first one is where you can apply for the same with your current lender. Provided, they offer personal finance top-ups, and you have already repaid a portion of the pre-existing loan through regular EMIs. After meeting all eligibility requirements, you can visit your lender’s nearest branch or check their website and fill out an online or offline application form.
In the second option, you can opt for a ‘balance transfer’. In this scenario, you will be shifting your current financing to another lender and then applying for a top-up on the active loan. You can also choose this method when other lenders offer better personal loan interest rates or longer repayment durations.
Further, before applying for a top-up, experts recommend you use an online personal loan EMI calculator, to accurately calculate the modified EMI you’ll pay. Do this by filling out the revised loan terms, such as – amount, tenure, and interest rate into the calculator.
Additional Read: Tips to Better Manage your Personal & Top-Up Loans
The required documentation
Following are some common documents that lenders ask for –
- Address proof such as your passport, utility bills, rent agreement paperwork, etc.
- Identity proof such as your PAN card, Aadhar card, Voter ID, passport, driving license, etc.
- Income proof
- Passport-size photographs
- Last three month’s salary statements, for salaried applicants
Choosing the right lender is the first step to eliminating your financial woes
If you’re actively searching for lenders offering attractive top-ups, come to Tata Capital. Choose our personal loans for self-employedand salariedindividuals for flexible financing terms, straightforward documentation procedures, and competitive interest rates.
Visit our website today and learn all about our top-up options!